Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided information on sales as follows: Мay $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of May's sales are expected to be uncollectible?
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- Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July? a. $30,000 b. $60,000 c. $36,000 d. $67,500 e. $80,000Bennett Inc. found that about 35% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August 300,000 Required: 1. Calculate credit sales for May.$ Calculate credit sales for June.$ Calculate credit sales for July.$ Calculate credit sales for August.$ Feedback 2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers. Bennett Inc.Schedule of Cash ReceiptsFor July and August July…Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided information on sales as follows: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July? Group of answer choices $30,000 $60,000 $36,000 $67,500 $80,000
- The Amber Magick Shoppe has forecast its sales revenues and purchases for the last 5 months of 200x to be as follows: Sales Purchases August RM22,000 RM17,000 September 15,000 19,500 October 25,000 29,000 November 30,000 20,000 December 26,000 24,000 60% of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of RM5,000 on hand as of October 31, and its minimum required cash balance is RM4,000. Required : Prepare a schedule of cash receipts for October, November and December. Prepare a cash budget for the same period.A Mikey's sells $119,500 of its accounts receivable to factors at a 1% discount. The firm’s average collection period is one month. What is the dollar cost of the factoring service? Dollar-cost of the factoring service $_________ per monthXYZ has forecast its sales revenues and purchases for the last 5 months of 2015 to be as follows: Sales Purchase August 22,000 and 17,000 September 15,000 and 19,500 October 25,000 and 29,000 November 30,000 and 20,000 December 26,000 and 24,000 60% of sales are on credit. On the basis of past experience, 50% of the accounts receivable is collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31, but its minimum required cash balance is $4,000 A. Prepare a schedule of cash receipts for October, November, and December. B. Prepare a cash budget for the same period.
- XYZ has forecast its sales revenues and purchases for the last 5 months of 2015 to be as follows: Sales Purchases August $22,000 $17,000 September 15,000 19,500 October 25,000 29,000 November 30,000 20,000 December 26,000 24,000 60% of sales are on credit. On the basis of past experience, 50% of the accounts receivable is collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31, but its minimum required cash balance is $4,000 Required: A. Prepare a schedule of cash receipts for October, November, and December. B. Prepare a cash budget for the same period.Fitbands’ estimated sales are: Oct. $131,989 Nov. 195,710 Dec. 249,288 Jan 124,318 Feb. 124,276 Mar. 124,361 What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale? Round your answers to two decimal places. Ending Balance January February March1.A company has the following expected pattern of collections on credit sales 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in second month after the month of sale. The remaining 1 percent is never collected. At the end May, it has the following accounts receivable balances From April sales P21,000 From May sales 48.000 The expected sales for June are P150,000. What are the total sales for April? 2. A company has a policy of maintaining an inventory of finished goods equal to 30 percent of the following month's sales. For the forthcoming month of March, the budgeted beginning inventory at 30,000 units and the ending inventory at 33,000 units. This suggests that
- Projector Limited has the following projection for the 4 months ending August 2018:MayJuneJulyAugustR’sR’sR’sSales320 000380 000420 000460 000Purchases160 000160 000230 000250 000Rent income11 00011 000??Salaries26 80026 800??1. 50% of the sales are for cash and the balance is on credit.2. All credit sales are collected one month after the sale.3. All purchases are on credit. Creditors are paid in full one month after the month of purchase.4. The tenants rent contract stipulates an increase of 20% from 1 July 2018.5. Salaries are expected to increase to R32 000 per month as at 1 August 2018.6. A new motor vehicle will be purchased during June 2017. Repayments of R6 000 per month will commence on 1 July 2017.7. Advertising costs are expected to be 2% of sales from 1 June 2018.8. A fixed deposit of R25 000 will mature in the month of July 2018.9. On 31 May 2018, the bank is expected to have a favourable balance of R420 000.Required:Prepare a Cash Budget for the three (3) months ending…Assume Laksko's has credit sales of $462,400 in March, $507,500 in April, and $550,200 in May. Also assume that 64 percent of sales are collected in the month of sale, 35 percent are collected in the following month, and the remainder are never collected. Credit purchases are $224,600 in March, $236,700 in April, and $252,700 in May. Credit purchases are paid in 30 days. Interest is $12,400 a month, wages and other expenses are $64,400 a month. Fixed assets purchases of $119,500 are scheduled for April with additional purchases of $56,400 in May. The April 1 cash balance was $321,060 and taxes of $180,000 must be paid on April 15. What is the cash balance at the end of May?Qw.3. Craig has projected sales to be $90,400 in April; $96,400 in May; $104,500 in June and $93,600 in July. The history of Craig’s sales indicates 20% cash and the remaining 80% on credit. The company’s collection history indicates that credit sales are collected as follows: 30% collected in the month of the sale60% collected in the month after the sale8% collected two months after the sale2% of credit sales are never collected